Look Beyond Las Vegas To See Casino Gaming's Large Local Impact

Vices
Truth is, the game was rigged from the start. So I study gaming.

Even though Nevada lost its monopoly on casino gaming in 1976, many Americans still think of the national casino gaming industry as being mostly in—and benefiting—Las Vegas. But most of the $72 billion or so tribal and commercial casinos make each year comes from outside Las Vegas. And while the industry gets attention on the national stage, casino gaming’s biggest impact is decidedly local.

Cleveland fans wait in a parking garage at the Jack Casino prior to the start of the Cleveland Cavaliers 2016 NBA Championship victory parade and rally on June 22, 2016 in Cleveland, Ohio. (Photo by Angelo Merendino/Getty Images)

A word about terminology: a commercial casino is a gambling establishment owned by a private company and licensed and regulated by a state. Tribal gaming operations are owned and regulated by the tribe, with oversight from the National Indian Gaming Commission. A racino is a portmanteau of “racetrack” and “casino” that is used for tracks that have added slot machines, although some have table games as well. In some states, slot machines are known as electronic gaming devices, and in others they are called video lottery terminals, but the gameplay is essentially the same. You may also hear about “distributed gaming,” which is slot machines in non-casino locations like bars, taverns, and truck stops.

Last month, the American Gaming Association released a report detailing the scope of the national commercial casino industry, which is growing steadily. Last year, 20 of the 24 states with commercial casino gaming recorded revenue increases, with record revenue in 11 of them. The casinos found in states from Maine to Nevada directly employed over 361,000 employees who earned more than $17 billion in income and benefits. The states that host casinos were likely pleased with the $9.2 billion the gaming halls paid in direct taxes on casino win.

This morning, the AGA released a follow-up report that details the impact of casino gaming throughout the United States, which estimates a $261 billion annual contribution to the national economy, supported nearly 1.8 million jobs (including those not directly working for casinos), and generated a total of $40.8 billion in taxes, including both direct gaming levies and payroll, sales, and business taxes.

“Gaming companies across the country,” said Sara Slane, the AGA’s senior vice president of public affairs, “are enabling long-lasting careers for their employees and making a huge impact on their communities through innovative partnerships with local nonprofits, volunteerism and the generation of revenue that supports critical services. The industry’s tax revenue alone provides enough funding to hire 692,000 new teachers.”

So, far from the glitz of Las Vegas, casinos are making an impact, sometimes in unlikely places. Iowa is not a state most people associate with big-time gambling, but consider this: since 1971, Iowa has legalized bingo, horseracing, the lottery, simulcasting (remote bets on horse races), riverboat casinos, racinos, and land-based casinos, with sports betting reportedly on the way. Once Iowa gets a lottery, its citizens will actually be able to bet on more things than Nevadans, unless the Silver State legalizes lotteries.

Since the first Iowa riverboat casino opened in 1991, its gaming industry has steadily grown. Last year, Iowa’s 19 casinos posted revenues of $1.5 billion, $336 million of which was paid to the state in taxes. In addition to supporting 15,662 jobs and paying $618 million in wages, Iowa casinos bought $239 million in goods from Iowa vendors and provided $62 million in funding to community organizations.

Casinos in Council Bluffs are finding special ways to make a difference. Through the Iowa West Foundation, they have contributed to the Pottawattamie Promise, which offers full rides to a local community college for eligible high school students who meet need and merit standards. Whether it is casino employees volunteering at a homeless shelter or corporate donations that sponsor important programs, casino gaming has had an outsize impact on that corner of Iowa.

Ohio, likewise, doesn’t have a reputation as a gambling powerhouse, but the state’s four casinos and seven racinos generated $1.8 billion in gaming revenue and $594 million in direct gaming taxes last year. That is more than Iowa, which is impressive considering the Buckeye State has only had casino gaming since 2012. Ohio’s higher revenue base gives its gaming operations a concomitantly higher impact on the state as a whole. The 19,953 jobs the Ohio industry supports pay $804 million in wages. Gaming operations last year paid $594 million in gaming taxes.

“The gaming industry’s impact goes far beyond the data,” says Casey Clark, the AGA’s vice president of strategic communication. “If you spend some time in markets like Southeastern Ohio, for example, you can really see the role gaming companies are playing as valued partners to local nonprofits and more. And that doesn’t even scratch the surface of the economic impact they have through job creation and tax revenues.”

The jobs might be the biggest impact-maker. Each of those jobs is a livelihood and an opportunity. And, as in Iowa, gaming operators give back to the community. Through the United Way, Miami Valley Gaming, which operates a racino, was able to give every preschooler in Warren County’s eight public preschools two books and activity sheets. That’s 860 children who have received a small contribution to their education.

For years, Las Vegas had a reputation as “the last Detroit,” a place in post-industrial America where a worker could make a middle-class income without a high level of existing skills. Valet parkers and table games dealers might earn as much as a doctor or lawyer. As Nevada has lost its casino monopoly, Las Vegas has become less unique in this regard. That means in states throughout the country, there are Vegas-like jobs available, where applicants with little experience but tremendous drive can find financial security for themselves and their families.

So while many people think of Las Vegas first when they think of casinos, today the opportunities those casinos provide are spread throughout the United States. It isn’t just Las Vegas that benefits from the taxes and jobs that casinos bring—it is, increasingly, everywhere.

A riverboat casino reflecting a muted sunset while casting its own reflection on the Fox River in Elgin, Illinois. Photo: Getty Images.

I grew up in Atlantic City, New Jersey, and worked in casinos there, catching bad guys and selling nuts (not simultaneously). That's how I got interested in studying casinos, gambling, games, and tourism. My Ph.D. in US History is from UCLA. Day job is directing the Center ...